Loading grant details…
China pledges to loan $400 million USD to Tanzania for Kiwira coal mine
| Funder | Unspecified Chinese Government Institution |
|---|---|
| Recipient Organization | Tanzania State Mining Corporation (STAMICO) |
| Country | Tanzania |
| Start Date | Aug 01, 2009 |
| End Date | Apr 07, 2032 |
| Duration | 8,285 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 1906 |
Grant Description
China pledges to loan $400 million USD to Tanzania for Kiwira coal mine In August, 2009, then Prime Minister of Tanzania, Mizengo Pinda, announced that the Chinese government had pledged to provide a loan of $400 million USD to help address the Kiwira coal mine's (Chinese name: 基维拉煤矿) financial problems.
In return, China would take 62% ownership and Tanzania would hold the remainder (38%). It is unclear if this deal was ever formalized in a signed financing agreement.
Tanzania's 100% government-owned State Mining Corporation (STAMICO) and China National Complete Plant Import and Export Co., Ltd. (COMPLANT) were planned to be responsible for project implementation. Kiwira mine is run by the Kiwira Coal and Power Company, which is wholly owned by STAMICO. The construction of the Kiwira coal mine was initially undertaken in 1983 and completed until 1988.
Coal production started in 1989 under STAMICO with technical support from the Chinese government. The generated 6MW of electricity.
Then, in 2005, Kiwira was privatized and acquired by TanPower Resources Limited, a company made up of a consortium of local investors.
However, as the mine performed poorly, the government decided to resume ownership in 2008, only to hand it back to STAMICO in 2013. This change in ownership delayed negotiations with the Chinese for this loan.
STAMICO was reportedly still searching for investors to resume production and construct a 200 MW coal-fired power plant.
Sources & References
- http://quote3.eastmoney.com/f10.asp?StockCode=000151&f10=011, http://www.fwenergy.com.cn/En/Article/168666.htmlL, http://rasilimali-zetu.blogspot.com/2011/06/stamico-to-run-kiwira-coal-mine.html
- China plans to invest $400 m in Tanzanian coal mine, $400m Chinese loan for Tanzania coal plan
- International Cooperation
- China's Diplomacy in Eastern and Southern Africa
- China to lend Tanzania $400 mln for coal project
- Tanzania says close to $400 mln power project loan
- Competing energy narratives in Tanzania: Towards the political economy of coal
- STAMICO’ INVESTMENT OPPORTUNITIES
- Mineral Reserves for Selected Minerals and Projects (October 2014)
- Coal in Tanzania
- 坦桑尼亚：中国准备对基维拉煤矿（Kiwira Coal Mine）投入5200亿先令
- 阳煤集团获生态贡献奖
- China to invest $400m in Tanzanian coal fired plant Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.
All Grantees
Tanzania State Mining Corporation (STAMICO)
Interested in applying for this grant?
Complete our application form to express your interest and we'll guide you through the process.
Apply for This GrantQuick Summary
Related Grants
